Explore:
February 1- Auction for Izmit Gulf Passage was cancelled. Interest rate was announced as 315.6 percent.
February 2- The 2000 year cotton production support premium was set as 9 cents per kilogram. Contracts with temporary workers at the Agriculture and Rural Affairs Ministry, Rural Affairs Directorate and State Water Works (DSI) were signed.
February 3- Annual inflation rate reduced to 28.3 percent in wholesale prices and to 35.9 percent in consumer prices.
February 5- The Council of Ministers adopted transfer of Iskenderun Steel and Iron Factories (Isdemir) to Eregli Steel and Iron Factories (Erdemir) and decided to form a commission comprising ministers to find solution to problems of manufacturing sector. Turkish Telekom cancelled the auction it had opened for infrastructure of GSM operation. The International Monetary Fund (IMF) approved a new loan tranche of 1.4 billion U.S. dollars to Turkey.
February 6- Opportunity of payment of tax debts in 18 installments was offered.
February 7- The Competition Board decided to punish Turkish Telekom with a 1.6 trillion TL fine. The Corporate Tax General Notice was issued.
February 9- The Prime Minister, ministers and bureaucrats convened to evaluate the meetings held with representatives of real sector.
February 10- Ihlas Finans`s activity licence was annulled. Five companies interested in Demirbank were selected.
February 12- Journalist Nezih Demirkent passed away. Ihlas Holding`s shares` boards were closed at the IMKB. Koc Holding accepted the decision on merger of 17 companies marketing its Tofas-Fiat`s and Ford Otosan`s products. The Council of Ministers decided to include boron minerals in scope of privatization.
February 13- The process of closing Ihlas Finans down started. Is Bankasi-Telecom Italia Mobile (Tim) joint venture GSM operator Aria (0 555) was introduced. Is Bankasi paid the last installment of licence price of 2 billion 25 million U.S. dollars and its 233.7 trillion TL of value added tax (VAT). IMF European One Director Michael C. Deppler said that privatization conditions of Turkish Telekom should be more attractive and that implementation of the economic programme was beyond the foreseen schedule.
February 14- The European Union (EU) Parliament approved Accession Partnership Document framework regulations. The Parliamentary Planning and Budget Commission approved the bill on closure of 25 funds.
February 16- The Council of State Administrative Cases Department General Assembly decided that the contract with the electricity distributor Aktas Elektrik company was not in line with the laws. Ali Ihsan Ilkbahar was re-elected Chairman of Association of Automotive Manufacturers.
February 17- Fischer and Deppler came to Turkey within framework of the G-20 meetings.
February 19- The row which broke out between the President and the Prime Minister during the National Security Council (NSC) meeting started to give first signals of the economic crisis. The IMKB national index reduced by 14.6 percent and repo interest rates rose to 760 percent. It was claimed that there had been nearly 7.6 billion U.S. dollars of foreign exchange outflow from the Central Bank. While the G-20 meeting was being held, Fischer and Deppler met with Prime Minister Ecevit.
February 20- Private sector called on pillars of the state to
act with common sense and solve problems through dialogue. It was announced
that 7.3 billion U.S. dollars had returned to the Central Bank while repo
interest rates increased up to 3,000 percent. Fischer and Deppler met
again with the Prime Minister. Electricity Market law was adopted.
-FLOATING CURRENCY REGIME-
February 21- Repo interest rates increased up to 7,500 percent.
The IMKB national index decreased by 18.1 percent and lost 29.3 percent
in value in three days. Newspapers reported the claims that banks had
purchased 3 billion U.S. dollars from the Central Bank. An economy summit
meeting was held at the Prime Ministry. Following the historical meeting
which lasted 13 hours, floating currency regime was adopted. The Public
Procurement draft law was announced.
February 22- On the first day of transition into floating currency, the Central Bank increased the selling price of 1 U.S. dollar from 689 thousand TL to 964 thousand TL. Interest rates increased up to 5,200 percent. The IMKB national index increased. IMF Managing Director Horst Koehler announced that they supported transition into floating currency.
February 23- U.S. President George W. Bush called Prime Minister Ecevit on the phone and extended support. The monthly interest rates for credit cards increased up to 60 percent. Wall Street Journal reported that the IMF was responsible from the economic crisis in Turkey. Standart and Poor`s downgraded Turkey`s rating.
February 24- Central Bank Governor Gazi Ercel went on leave to retire. At their meeting, bankers and State Minister Recep Onal decided to set selling price of 1 U.S. dollar as between 800-850 thousand TL in the beginning of the week.
February 26- Interest rates at the IMKB repo market decreased to 100 percent. As a result of the positive atmosphere of the weekend meeting of the Central Bank with the bankers, IMKB national index increased and U.S. dollar decreased. Treasury Undersecretary Selcuk Demiralp went on leave. Ferhat Emil started to serve as Acting Treasury Undersecretary.
February 28- Ulusal Bank was seized. The Council of State annulled the supplementary tax on motor vehicles consuming LPG. A rumor saying that Kemal Dervis, one of the World Bank vice-presidents, would be appointed as the State Minister for Economy was spread.
Next > March
